Latest Figures: Fiscal Accounts of General Government, Jan-Mar 2018
The preliminary General Government fiscal results for the first quarter of 2018, which are prepared by the Statistical Service of Cyprus (CYSTAT), indicate a surplus of €340,5 mn (1,7% of GDP), as compared to a surplus of €202,9 mn for the first quarter of 2017 (1,1% of GDP).
Total expenditure for the period of January-March 2018 recorded an increase of €29,4 mn (+1,9%) as compared to the corresponding period of 2017 and reached €1.542,6 mn (€1.513,2 mn in 2017).
The compensation of employees (including imputed social contributions and pensions of civil servants) increased by €31,9 mn (+6,1%) to reach €552,0 mn (€520,1 mn in 2017). Social benefits registered a small increase of €4,8 mn (+0,8%) to reach €598,3 mn (as opposed to €593,5 mn in 2017) and current transfers also increased by €3,5 mn to reach €113,8 mn (€110,3 mn in 2017). A small increase was also recorded by intermediate consumption (€0,8 mn) and subsidies (€0,2 mn), which reached €128,8 mn and €8,2 mn respectively.
The remaining expenditure categories recorded a decrease. Specifically, investments were decreased by €7,0 mn as compared to the first quarter of 2017, recording an expenditure of €44,4 mn (€51,4 mn in 2017). Excluding land annexations, that are included in investments, this decrease is reduced to €5,4 mn. Payable interest also recorded a decrease of €4,5 mn and was reduced to €88,0 mn from €92,5 mn, which was the interest paid during the corresponding months of the previous year. A minimal decrease was also recorded in capital transfers that decreased by €0,3 mn as compared to the first quarter of 2017 to reach €9,1 mn.
Total revenue increased by 9,7%, that is €167,0 mn, to total €1.883,1 mn during the first quarter of 2018 (€1.716,1 mn in the corresponding months of 2017).
All revenue categories except from the category of property income exhibited an increase during the period of January-March 2018.
Specifically, taxes on production and imports registered a 15,6% increase from 2017, that is an increase of €105,9 mn (€786,4 mn in 2018 as opposed to €680,5 mn in 2017), of which net VAT revenue increased by 24,9%, which corresponds to €98,5 mn, and reached a total of €493,6 mn (in comparison to €395,1 mn in 2017).
Revenue from taxes on income and wealth increased by €45,1 mn or 11,2% and reached €447,5 mn during the first three months of 2018 in comparison to €402,4 mn in 2017, while social contributions collected during this period increased by 3,2% (or €13,6 mn) and reached €433,3 mn (as compared to €419,7 mn in January-March 2017). Revenue from the sale of goods and services increased by €11,3 mn (or 11,2%) and totalled €112,4 mn. Current transfers received increased by €4,0 mn and reached €44,3 mn.
An important increase of €46,4 mn was recorded in capital transfers received by the State during this period, that reached €53,9 mn (€7,5mn during the first quarter of 2017).
Finally, property income, the only category that recorded a decrease, was reduced to €5,3 mn during the period of January-March 2018.
Cyprus Fiscal Development (Post-programme Surveillance)